On February 20, New York Times writer Stephen Castle headlined, "Europe Agrees on New Bailout to Help Greece Avoid Default," saying:

On Tuesday morning, Luxembourg president/Euro Group head Jean-Claude Juncker announced:

"We have reached a far-reaching agreement on Greece's new program and private-sector involvement. The new program provides a comprehensive blueprint for putting the public finances and the economy of Greece back on a sustainable footing."

In fact, it assures human misery and economic destruction, not restoration. It's a deal only bankers can love. It demands Greece reduce its debt from 160% to about 120% of GDP by 2020, but how incurring more debt achieves it wasn't explained.

Media reports said bondholders agreed to a 53.5% face value haircut - the equivalent of losing 75% overall. In fact, only 30% of toxic assets are involved. Most held aren't touched. Greece must make good on them, no matter the impossible burden.

Private lenders will swap current holdings for new lower face value/lower interest rate bonds. Representing bondholders, Institute of International Finance's Charles Dallara and BNP Pariba's Jean Lemierre called the deal "solid....for investors, a fair deal for all parties involved."

In other words, raping Greece for bankers is "solid" and "fair." Its citizens had no say. Without rights, what's best for them wasn't discussed.

Moreover, the nation's $650 billion debt burden is double the reported amount. The more it increases, the harder it is to service and repay, the more future aid's needed, and deeper the country's economic catastrophe heads for total collapse.

The deal escrows $170 billion to assure bankers get paid. Investment advisor Patrick Young got it right telling Russia Today that dealmakers don't trust Greece living up to terms because its track record is so bad.

"So we now have a situation," said Young, "where Greece said we'll do anything you want, but the problem is" too great a burden to bear. "It's a catastrophe pushing people to the brink of starvation."

No matter. Finance ministers will give Greece some money on dreadful terms "where like a nine year old child, every Friday it has to go to daddy, say it's done its homework, say it's been a good boy, can it please have next week's pocket money to pay its civil servants. (It's) a horrible loss of sovereignty."

Reports say its government will change its constitution to prioritize repaying debt ahead of vital domestic obligations.

Other terms involve lenders cutting interest rates on bailout loans by 0.5% over the next five years, and 1.5% thereafter. An estimated 1.4 billion euros would be saved by 2020.

The ECB will compensate by distributing profits on its 40 billion Greek debt holdings. In addition, Eurozone countries will contribute their Greek bond income through the end of the decade.

Still to be decided is EU/IMF burden sharing. Both agreed to contribute. Not discussed or considered is leaving 11 million Greeks on their own out of luck. They have three choices - starve, leave, or rebel.

"A 'strictly confidential' report on Greece's debt projections prepared for eurozone finance ministers reveals Athens' rescue programme is way off track and suggests the Greek government may need another bail-out" soon after the latest one.

Even under the most optimistic scenario, imposed austerity's punishing Greece so severely, its burden's impossible to bear.

As a result, continued financial infusions are needed. Double or more the agreed amount's required. Current problems increase exponentially toward total collapse, default and bankruptcy.

The report explained Greece's impossible burden. It also "paints a troubling outlook for the debt restructuring, expected to begin this week." Bond swapping creates "a class of privileged investors who will chase off" others when Greece tries selling fixed income securities at market. Germany, the Netherlands and Finland opposed a deal doomed to fail.

The report warned "Greek authorities may not be able to deliver structural reforms and policy adjustments at the (envisioned) pace." Perhaps never with shrinking revenues unable to cover liabilities.

It's "now uncertain whether market access can be restored in the immediate post-programme years." Left unsaid was restoring it's impossible ever. Greece faces protracted deep depression. Its life force is ebbing. Only its obituary remains to be written.

A Final Comment

Greece's debt deal provides a model for future European sovereign restructurings. It's one of six or more troubled countries. Portugal looks like the next domino to fall, but Spain, Italy, Ireland, and others may follow.

Moreover, implementing Greece's deal entails problems. Reality may prevent fulfilling promises. If April elections are held, new MPs may balk. Declaring a debt moratorium, defaulting and leaving the Eurozone are options.

How it all plays out isn't known. Technocrats run Greece. They may cancel April elections and stay in power. Public sentiment remains the wild card. Impossible to bear pain may become uncontainable rage. More than buildings may burn.

If political Greece doesn't care, people must act on their own. Revolutionary seeds are planted. They can erupt any time. Change only comes bottom up. It's long past time to get started.

Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.

Also visit his blog site at sjlendman.blogspot.com and listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening. http://www.progressiveradionetwork.com/the-progressive-news-hour/.

About Me

Right To Share Food
At Right To Share Food, we believe that sharing food with our brothers and sisters is a fundamental human right. We believe that sharing food is a constitutionally protected activity, guaranteed under the freedom of association clause of the first amendment of The Constitution of the United States of America. We believe that sharing food outside and in public is an equally protected activity. Our goal is to promote cooperation among people in order to exercise and defend this right.
Hello; let me introduce myself. My name is Michael Hubman. I am the founder and the facilitator of Right To Share Food. Since 2007 I have been lobbying on behalf of the human and civil rights of homeless people. I operate Watercorps, a charity that gives bulk drinking water to the homeless people living on the streets of Skid Row Los Angeles.
Conflict occurs when government, most often municipalities, attempt to effect social engineering by restricting or forbidding the sharing of food on public property, the commons and even private property.
Michael “Waterman” Hubman
http://righttosharefood.org